Stablecoins Pose Risk to Central Banks' Monetary Policy

Switzerland's central bank is concerned that stablecoins could hinder its ability to implement monetary policy. According to Petra Tschudin, a member of the Swiss National Bank (SNB) governing board, large stablecoins not integrated into the existing financial system create challenges for central banks in fulfilling their mandate.

Tschudin emphasized that modernizing the payment system is sensible and that stablecoins can improve the current financial system by allowing international companies to send money at lower costs. However, she noted that this comes with a trade-off: 'a situation where it's harder for central banks to fulfill their mandate.'

The SNB has expressed skepticism about stablecoins and cryptocurrencies, despite experimenting with digital forms of central-bank money through its blockchain-based wholesale CBDC.